Hexatronic Group AB (HTRO) AI Stock Analysis

• Market Cap: kr5.00B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 37.3
• Beta (1Y): 1.19
• Revenue Growth: 0.01%
• EPS Growth: -71.63%
• Country: SE
• Employees: 1,997
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.59
• Shares Outstanding: 205,637,220
• 10 Day Avg. Volume: 1,116,583
• 30 Day Avg. Volume: 1,166,324
• PEG Ratio: -0.36
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 12.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: kr26.00 ▲(10.36% Upside)

Hexatronic Group AB's strong financial performance, characterized by robust revenue and cash flow growth, is the primary driver of its stock score. However, technical indicators suggest a bearish trend, and the stock's high P/E ratio indicates overvaluation, which weigh down the overall score.

Positive Factors

Free Cash Flow Strength

Sustained FCF growth of 19.6% enhances Hexatronic's financial flexibility, enabling durable funding for capex, capacity expansion, debt reduction or targeted M&A. Strong cash conversion supports resilience through cycles and underpins long-term reinvestment capacity.

Robust Revenue Growth

A 39.5% TTM revenue increase indicates strong demand for fiber products and successful international expansion. Durable top-line growth reflects structural FTTH and broadband buildouts, supporting scale benefits, higher utilization and potential longer-term margin recovery.

Improved Leverage Position

A lower debt-to-equity ratio and stable equity base point to improved capital structure and financial flexibility. This durable improvement reduces refinancing risk, supports investment in manufacturing and R&D, and strengthens ability to pursue strategic opportunities.

Negative Factors

Compressed Net Profit Margin

Declining net margin to 4.7% despite revenue growth signals margin compression from cost pressures, pricing or mix shifts. Persistently thin net margins reduce retained profits for reinvestment, lower cushioning against downturns and constrain long-term EPS upside.

Weaker Return on Equity

A falling ROE to 9.3% indicates the company is generating less profit per unit of shareholder capital. If sustained, lower ROE reflects reduced capital efficiency, limits shareholder value creation, and may point to increased capital intensity or competitive margin pressure.

Earnings Volatility

A sharp -71.6% EPS decline highlights significant earnings volatility or one-off impacts. Persistent EPS swings undermine predictability of profits and cash returns, complicating planning for capex or dividends and increasing risk premia for long-term investors.

Hexatronic Group AB Business Overview & Revenue Model

Company Description

Hexatronic Group AB (publ), together with its subsidiaries, designs, develops, manufactures, markets, and sells fiber communication solutions in Sweden and internationally. The company supplies passive infrastructure for telecom companies; and provides components and system solutions. It also offers fiber optic cables, ducts, copper cables, and network accessories; high tech products for fiber optic communications; fiber optic solutions, such as prefabricated ODFs, multi-fiber cable assemblies, and industrial applications; and training services for telecommunications, electric/gas, and health/safety markets. In addition, the company provides high-density polyethylene pipes for communication, power, fiber-to-the-home, ITS, CATV, geothermal, and industrial pressure pipe applications; develops and certificates programs for various industries; and apprenticeships and specialist training programs, as well as distributes fiber-optic connection and optical measurement technology. It serves wholesalers, telecom operators, network owners, telecom companies, installers, and system houses. Hexatronic Group AB (publ) was incorporated in 1972 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

Hexatronic Group AB generates revenue primarily through the sale of its fiber optic products and systems to telecommunications operators, network builders, and service providers. Key revenue streams include the manufacturing and distribution of fiber cables, as well as connectivity products such as splices, connectors, and enclosures. The company benefits from long-term contracts with major telecommunications providers and engages in partnerships to develop tailored solutions for specific customer needs. Additionally, Hexatronic's expansion into international markets and the consistent demand for high-speed internet infrastructure contribute significantly to its earnings, as the global shift towards digital communication amplifies the need for robust fiber optic networks.

Hexatronic Group AB Financial Statement Overview

Summary

Hexatronic Group AB demonstrates robust growth and operational efficiency, with strong revenue and cash flow growth. However, there are signs of pressure on profitability margins and a decrease in return on equity. The company's leverage position has improved, indicating a more stable financial structure.

Income Statement

Hexatronic Group AB has shown strong revenue growth over the years, particularly in the TTM period with a 39.5% increase. The gross profit margin remains healthy at around 41.8%, although it has slightly decreased from previous years. The net profit margin has declined to 4.7% in the TTM, indicating some pressure on profitability. Despite this, the EBIT and EBITDA margins are stable, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.74 in the TTM, indicating a better leverage position compared to previous years. Return on equity is at 9.3%, which is a decrease from past performance, suggesting reduced profitability on equity. The equity ratio remains stable, showing a solid capital structure.

Cash Flow

Hexatronic's free cash flow has grown by 19.6% in the TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is at 0.29, indicating that cash flows are supporting earnings. The free cash flow to net income ratio is healthy at 0.60, reflecting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.62B	7.58B	8.15B	6.57B	3.49B	2.08B
Gross Profit	2.34B	3.17B	3.50B	2.87B	1.53B	942.21M
EBITDA	894.00M	1.10B	1.62B	1.26B	483.40M	271.18M
Net Income	128.00M	346.00M	848.00M	795.00M	253.10M	126.50M
Balance Sheet
Total Assets	8.28B	8.96B	8.73B	7.39B	4.72B	1.95B
Cash, Cash Equivalents and Short-Term Investments	596.00M	633.00M	813.00M	552.00M	675.10M	212.30M
Total Debt	2.76B	3.07B	3.49B	2.35B	1.92B	744.66M
Total Liabilities	4.65B	4.91B	5.30B	4.58B	3.07B	1.30B
Stockholders Equity	3.60B	4.02B	3.40B	2.77B	1.64B	649.53M
Cash Flow
Free Cash Flow	366.00M	596.00M	426.00M	190.50M	-97.60M	184.85M
Operating Cash Flow	521.00M	921.00M	944.00M	669.50M	104.70M	249.84M
Investing Cash Flow	-202.00M	-508.00M	-1.43B	-1.10B	-1.15B	-229.04M
Financing Cash Flow	-354.00M	-613.00M	770.00M	270.60M	1.51B	89.50M

Hexatronic Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HTRO, the sentiment is Positive. The current price of 23.56 is above the 20-day moving average (MA) of 22.50, above the 50-day MA of 20.45, and above the 200-day MA of 22.47, indicating a bullish trend. The MACD of 1.02 indicates Negative momentum. The RSI at 70.41 is Negative, neither overbought nor oversold. The STOCH value of 83.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:HTRO.

Hexatronic Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALCA	71 Outperform	kr607.87M	18.21	―	―	-7.91%	-33.91%
HTRO	67 Neutral	kr5.00B	37.32	3.38%	―	0.01%	-71.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAYS	55 Neutral	kr317.95M	567.06	―	―	10.55%	―
MAVEN	53 Neutral	kr287.74M	-41.94	-5.81%	―	-9.79%	-144.24%
INCOAX	44 Neutral	kr124.70M	-3.57	-24.59%	―	-48.24%	-48.99%

Hexatronic Group AB Corporate Events

Hexatronic Expands US Presence with Acquisition of Communication Zone

Hexatronic Group AB has acquired Communication Zone Inc., a leading data installation and service provider based in Chicago, to expand its data center service offerings in the US Midwest. This acquisition enhances Hexatronic’s market position by integrating Communication Zone’s strong customer base and service capabilities, aligning with Hexatronic’s strategy to grow its Data Center business and achieve its 2028 financial targets.

The most recent analyst rating on (SE:HTRO) stock is a Hold with a SEK18.00 price target. To see the full list of analyst forecasts on Hexatronic Group AB stock, see the SE:HTRO Stock Forecast page.